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Essay heading: 5 forces model
 
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Issue: Business
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Date added: March 9, 2006
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No of pages / words: 3 / 616
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The overnight letter delivery business will survive as long as consumers have important documents to send and communications technologies do not offer 100 percent reliability. Further, the complexities and costs of networked technologies will not be able to completely replace the simplicity and inexpensiveness of a packing slip...
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Labor has relatively little power in its relationship with FedEx as compared with UPS. FedEx has chosen wisely to screen potential employees for union links thereby negating the ability of labor to exert itself on the company. Government on the other hand has a great deal of power in its relationship with FedEx...
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The price of a FedEx overnight letter is $11 compared to UPS and DHL prices of $12 and $13 respectively. As FedEx management's policy is to maximize profits, they use the cutthroat business technique by pricing their services at high prices and hoping the consumer will use it based on the company's reputation and their unique and detailed tracking system...
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